Table of Contents
- The Basics: What is an Invoice?
- When This Template is Needed
- The Consequences of Not Using One
- The Most Common Situations for This Form
- What Should be Included in This Form?
1. The Basics: What is an Invoice?
What is an Invoice?
An Invoice is a request for payment for itemized goods and services that is sent from the Seller to the Buyer.
A basic form should include the following details:
- Seller: person or company offering goods or services
- Buyer: person or company purchasing the goods or services
- Description: detail of each item sold or service provided
- Due Date: when payment is expected, either in 30 days or by a certain date
- Payment: whether the buyer should pay by check, money order, or other means
- Purchase Order Number: unique identifier used to keep track of orders
An invoice is used by a person or company, offering goods or services, to tell a Buyer that payment is now due.
As a reference, this form goes by other names:
- Bill
- Bill of Sale
- Itemized Bill
- Purchase Invoice
2. When This Template is Needed
An Invoice is needed whenever a business transaction involves payment for goods or services. They are used to track inventory, accounts receivables, and expenses. The Seller can either send one to the Buyer once a transaction is completed or within 14 days of the transaction.
An invoice can be sent to the Buyer immediately or within 14 days of the business transaction.
3. The Consequences of Not Using This Form
Without a written Invoice, the Seller has no written proof that a business transaction occurred. After the Seller provides goods or services, the Buyer could simply not pay if one is not sent. Practically, they also serve as a professional reminder that payment is still due. Legally, they are enforceable in court in case the Buyer continues to not pay what is due or the Seller provides bad goods or services.
| Seller’s Preventable Consequences | Buyer’s Preventable Consequences |
|---|---|
Loss of Money
| Loss of Money
|
Loss of Time
| Loss of Time
|
Our free invoice can help you avoid unnecessary disputes about how much is owed and give you a stronger footing if you ever need to go to court.
Once payment has been received and/or processed, the Seller can issue the Buyer a receipt.
4. The Most Common Situations for This Form
If you want to get paid for good or services provided, you should send an invoice. They are commonly used by freelancers, businesses, service providers, and other professionals.
Here are just a few of the professionals who may need one:
| Freelancers | Businesses | Service Providers |
|---|---|---|
| Attorneys/Lawyers | Advertisers | Computer & IT Service Providers |
| Bookkeepers | Marketers | Drivers |
| Consultants | Market Researchers | Housekeepers |
| Graphic Designers | Printers | Janitors |
| Journalists | Recruiters | Jewelers |
| Photographers | Shipping and Package Providers | Landscapers |
| Technical Writers | Traders | Pet Sitters |
| Translators | Transporters | Pool Cleaners |
| Web Developers |
5. What Should be Included in This Form?
A simple Invoice generally addresses the following basics:
- Who is the seller and buyer
- What item or service is being purchased, including a description
- Where the items should be delivered or service performed
- When the payment is due (i.e. 30 days from the invoice date or before a certain day)
- How the payment should be made (i.e. check or money order)
